India's exports of gems and jewellery dropped 3.46% in FY16 to USD 38,599.18 million as compared to USD 39,980.63 million in FY15. Gross exports of cut and polished diamonds in FY2016 (financial year April 2015 to March 2016) dropped 13.66% to USD 19,996.06 million (provisional same ports figures and data) as compared to USD 23,160.18 million in FY15, according to Gem & Jewellery Export Promotion Council (GJEPC).

In FY16, gems & jewellery exports of USD 38,599.18 million accounted for 14.78% (up FY15) of the country's cumulative exports of USD 261,136.80 million (overall exports were down 15.85% as compared to FY15) ranking the gems & jewellery sector as one of the leading foreign exchange earners for the country. However, this is the fifth successive year wherein gross gems & jewellery exports have been falling; and the first time in the last six years that the exports of cut & polished diamonds has fallen to below USD 20,000 million levels.  
 
Net import of rough diamonds (quantity in lakh carats) dropped 16.17% in FY16 to USD 14,047.81 million as compared to USD 16,757.37 million in FY15. Net imports of cut and polished diamonds dropped 58.26% in FY16 to USD 2,771.40 million as compared to USD 6,640.14 million in FY15.
          
Praveenshankar Pandya, Chairman, GJEPC, said, ''For the first time ever, the Export of Cut & Polished diamonds, has shown a huge decline of 13% during April- March 2015-16, in comparison to the same period last year. Weak international demand and high rough diamond prices have led to the absence of Profitability. Slow Demand has led to the fall in Rough Diamond Import by 16% in FY 2015-16 for the first time. Rough Prices are edging upwards, the sluggish global demand has created inventory pile up. Increased Financial Cost or inventory carrying cost has become unbearable. Interest Subvention is the need of the hour!''
 
''However, export to the US is showing an upward trend but the only deterrent is the DUTY in the Region. Inclusion of gems & jewellery business in Merchandise Exports from India Scheme (MEIS) will bring respite and boost trade to the Region,'' Pandya added.
 
''GJEPC is preparing a 'Job Work' draft Policy to be shared with the Government. The facility of job work is already allowed in China. In-spite of labour being around 20% expensive than India, global diamantaires  are sending their diamonds to China for manufacturing purpose as job work policy is already in place in China. It is proposed to allow Goods on consignment basis for manufacturing purpose thus creating more jobs for artisans/karigars in the country,'' said Russell Mehta, vice chairman, GJEPC.